Category Archives: Colombia

Itau Unibanco Holding SA, Latin America’s biggest bank by market value, is preparing to lend as much as $300 million to companies building a toll road in Colombia, people with direct knowledge of the matter said.

The borrowers are a consortium building the Pacifico 2 highway under Colombia’s 4G infrastructure program, said the people, who asked not to be identified because the negotiations are private. Goldman Sachs Group Inc. participated in a 4G financing in February, when it underwrote a $260.4 million bond for the Pacifico 3 highway.

A government agency provides guarantees in the event tolls fall short of forecasts, allowing banks to book it as if it had Colombia’s sovereign risk and at the same time gain returns of a riskier security, profiting from the difference, two of the people said. The Goldman Sachs deal was rated BBB- by Fitch Ratings, one level below Colombia’s rating.

Private equity group Innova Capital and a subsidiary of Goldman Sachs have announced a joint venture to provide funding to Colombian mobile infrastructure developer Golden Comunicaciones and support the development of telecommunication assets throughout the country.

Golden is a member of the Innova Latin American development programme and the financing will be used for the construction of mobile phone towers in the region.

“The investment made by Goldman Sachs and Innova will enable us to reduce the digital divide that exists in our country and undoubtedly will enable us to improve our current network infrastructure,” said Golden CEO Herman Torres.

Based in Bogota, Golden was founded in 2013 by industry veterans with experience in the development, design, construction and operation of telecommunication infrastructure. The company owns and operates towers and other wireless infrastructure and related sites in Colombia.

German Efromovich, Chairman of the Board of Directors of Avianca Holdings S.A. and Aerovias del Continente Americano S.A. has announced the appointment of Hernán Rincón (pictured above) as the new Chief Executive Officer of Avianca Holdings S.A. and Avianca S.A

Mr. Rincón, was most recently CEO for Microsoft Latin America, will replace Alvaro Jaramillo Buitrago, who was appointed interim CEO after Fabio Ramirez Villegas stepped down as Chief Executive Officer.

“Appointing Hernán Rincón as the head of Avianca Holdings S.A. and Avianca S.A. coincides with the beginning of a new phase in which strengthening of the organization is crucial to cope with the changes of the environment. The latter, however, requires a rigorous adjustment of our strategy in order to maintain Avianca’s high quality of service and business competitiveness, after almost 100 years of continuous service to travelers in Colombia, Latin America and the world. A challenge that, I’m sure, Mr. Rincón will know how to take on supported by the talent, vision, creativity and leadership that have characterized him throughout his successful career,” said Chairman Efromovich.

Colombia’s state oil company Ecopetrol will seek $2 billion in damages from contractor Chicago Bridge & Iron Company for additional costs during the renovation of Colombia’s Reficar refinery, Ecopetrol said late on Monday.

Ecopetrol has said bad management at CB&I increased spending on the project by $4 billion, double the original $3.99 billion price tag. Ecopetrol said it filed the suit against CB&I before the International Chamber of Commerce.

The Colombian government is preparing a complaint against contractor Chicago Bridge & Iron NV, which directed construction on the newly renovated Reficar refinery, after accusations bad management sent the project some $4 billion over budget. The refinery, part of state-run oil company Ecopetrol , reopened late last year after a multi-billion-dollar overhaul meant to increase its capacity from 80,000 barrels per day to 165,000.